The news: Revolut sold shares that valued the company at $75 billion. The amount raised was unclear, but the buyers included several venture firms and asset management firms that commonly invest in private shares. The neobank has raised $2.89 billion in venture funding since it was founded in 2015.
Zoom out: Revolut recently acquired banking licenses in Mexico and Colombia, plans to apply for a banking license in South Africa, and will start issuing cards in India. The neobank has considered applying for a US banking license and spoken with investment banks about the potential acquisition of a US bank to secure a license. Today, it partners with Lead Bank to operate banking services in the US.
Globally, Revolut is massive: It reported 52.5 million customers and a $1 billion net profit in 2024. In the US, it offers basic consumer and business banking products and services along with some developer tools. Globally, it is an increasingly complex financial services "super app,” with particularly heavy investment in Europe.
Trendspotting: What Revolut should do to be competitive in the US is open to question. Neobank heavyweights like Cash App, Chime, and SoFi have run out of niches to fill and now offer checking and savings accounts, credit products, crypto, and investing tools.
If Revolut moves in on the US banking industry, it will face an existing market for cross-border payments. Core service apps like Wise already offer international money transfer services.
Our take: Revolut’s global success has been remarkable. But it may just crowd the graveyard of foreign neobanks that have tested the US and Canadian markets.
In the US, N26 quit in 2022 after two years. When Bunq tried in 2023, it gave up after getting tied up in regulatory reviews (it just received a US broker-dealer license). Monzo still operates in the US but gave up hope of getting a banking license. In Canada, Revolut left after struggling to break into the market but is reportedly trying again. Incumbents have a lot to fear, but Revolut doesn’t have a slam dunk.